Contracts have not been signed, but the promotion is close to booking the 170-pound contest. The UFC has not officially announced a location for the March 27 pay-per-view event.
Woodley (19-6-1) is looking to snap a three-fight skid, the longest losing streak of his career. He surrendered his UFC title to Kamaru Usman via unanimous decision in March 2019, and has since suffered losses to Gilbert Burns and Colby Covington. Usman, Covington and Burns are the Nos. 1-, 2- and 3-ranked welterweights in the UFC, respectively.
Luque (19-7-1) is a rising contender, with a 12-3 record in the UFC. His most recent two losses -- in 2017 and 2019 -- came against Leon Edwards and Stephen Thompson. He is currently riding a two-fight winning streak.
ESPN's Ariel Helwani contributed to this report.